NUMBER 37 – JANUARY 2014 LETTER TO SHAREHOLDERS aero-notes

EADS BECOMES Philippe Balducchi, Group Head of Investor Relations and Financial Communication

Dear Shareholders,

I’m delighted to bring you this special edition of aeronotes, which marks the beginning of a new chapter in our Company’s history. As of 2014 we are Airbus Group! The new Group name clearly shows our commitment to innovation and internationalisation and our passion for making things fly.

Already as of 2 January this year, your EADS shares are listed under the Airbus Group name (and symbol: AIR). The legal name change, meanwhile, will be subject to approval of the Annual General Meeting, to be held end of May 2014.

The commercial aircraft market remains robust: in 2013 we once again beat our orders and deliveries targets. On top of that, as announced in December, we have a new dividend policy, targeting sustainable dividend growth within a payout ratio of 30%-40%.

Dear shareholder, we look forward to accompanying you as we together enter this next chapter.

Yours, Philippe Balducchi AIRBUS GROUP

Tom Enders, Toulouse, January 2nd 2014.

AIRBUS GROUP TAKES OFF INTO 2014 WITH JOINT BRAND

“For many years, Airbus has been The Netherlands. “We are a pioneer for European a globally renowned synonym industrial integration. It is a logical step and high time GOING FORWARD, for technology breakthrough as that our multinational culture is also mirrored in our THE GROUP well as aeronautic passion and legal structure,” said Enders. This legal conversion IS HOME TO: has no impact on the organisation or operations pride. Joining forces under the of the Group. AIRBUS, focusing on strong Airbus brand gives all our commercial aircraft activities. Revenues: €36.9bn. operations and employees the Both the legal name change into Airbus Group N.V. Employees: 68,000. thrust and lift to capture global and the conversion of the legal form into SE are subject to approval of the Annual General Meeting AIRBUS DEFENCE markets.” Airbus Group CEO Tom Enders (AGM) of Shareholders: while adoption of the new AND SPACE, integrating the Group’s defence and Taking off into the New Year, the EADS Group has name is expected at the AGM in May 2014, the legal space activities and military been rebranded as “Airbus Group”. Uniting all its conversion is targeted for approval in May 2015. aviation activity. activities under a single and strong brand, Airbus Revenues: €14bn. Group also renames two of its three Divisions. These steps complement the transformation Employees: 40,000. process of the Group. In less than two years, the , Furthermore, the Group is launching procedures Company has not only modernised its governance, comprising all commercial to change the legal form of its holding by 2015: broadened the shareholding structure, and united and military helicopter activities. Once renamed, Airbus Group N.V. shall turn into the Headquarters but also thoroughly overhauled Revenues: €6.3bn. a European Company, Airbus Group SE (Societas its Company strategy and launched the integration Employees: 23,000. Europaea) which will continue to be registered in of the defence and space businesses.

2 AERO-NOTES - JANUARY 2014 Focus ENHANCING COMPETITIVENESS AIRBUS GROUP OUTLINES PLAN FOR DEFENCE AND SPACE RESTRUCTURING competences in communications technology, including secure satellite communications, “We need to improve our Following the strategy review, the EADS Board public mobile radio and border security competitiveness in defence and of Directors decided to consolidate the defence systems. and space businesses into one new Division • The Electronics business line represents a space – and we need to do it named (Airbus DS). centre of excellence for sub-systems, with the now. With our traditional markets necessary critical size to support the Division’s down, we urgently need to Pooling the space and defence entities Airbus other business lines improve access to international Military, and Cassidian is the Group’s response to the changing market environment In order to implement those changes, the Group customers, to growth markets. with flat or even shrinking defence and presented a reorganisation plan to the European For that to work, we need to space budgets in the Western hemisphere. Council in December 2013. The restructuring cut costs, eliminate product This structural change will provide optimised plan for the defence and space businesses of and resource overlaps, create market access, cost and market synergies and the Group will result in a reduction of positions improved competitiveness overall. It will also and a substantial consolidation of sites across synergies in our operations provide better visibility on the European leader , France, Spain and the United Kingdom. and product portfolio and in space and defence. For cost and operational reasons, the new Division better focus our Research and – Airbus DS – will simplify and consolidate its legal Development efforts. That’s what The new division consists of four business structures. segments: the restructuring and integration • Military Aircraft is responsible for all fixed-wing The new Division starts operating at executive plan for our defence and space aircraft, including combat, transport, mission level as of 1 January 2014. After the consultation business is all about.” and unmanned aerial vehicles. process with the works councils, expected to • Space Systems manages the satellite and be concluded by mid-2014, the three entities – Airbus Group CEO Tom Enders launcher businesses. Airbus Military, Astrium and Cassidian – will be • The Communication, Intelligence and fully integrated and operational at all levels as Security (CIS) business line brings together Airbus DS.

Communication, Military Aircraft Space Systems Intelligence Electronics and Security

AERO-NOTES - JANUARY 2014 3 SHAREHOLDERS’ PAGE

SHAREHOLDER YOUR AIRBUS GROUP SHARES

ACTIVITY 2013 SHARE PRICE EVOLUTION as of 15 January 2014

In 2013 Airbus Group Financial Communication Base 100 as of 3 January 2011 Airbus Group share price (in €) team met some 4,000 private shareholders. More 350 than 20 information meetings and site visits were 60 organised throughout the year in France, Germany, Spain and the UK. 300 50

If you would like to take part or find out more information 250 about such events, please phone the Shareholder 40 information number or write to [email protected]. 200

30 150

20 100

10 50 2011 2012 2013 2014

Airbus Group CAC 40

Getafe, Spain SHARE PRICE EVOLUTION SINCE JANUARY 2013 (Paris Stock Market) High: € 56.64 (on 15 January 2014) Low: € 30.07 (on 2 January 2013) Performance over the period: +88.4% Gross dividend per share: € 0.60* *Paid on 5 June 2013.

Paris, France CAPITAL STRUCTURE as of 31 December 2013

SOGEPA 11.99%

GZBV Free Float 10.94% Retail & Institutional shareholders* 72.58% SEPI 4.13% Treasury Shares** 0.36% Oxford, UK

*Including warehoused shares of SOGEPA (0,07%). **Shares to be cancelled.

DISCLAIMER EADS has been rebranded into Airbus Group as of January 2 2014. Any document (EADS Press Releases, Financial Disclosures and Presentations, Interviews, Speeches and Images) published before January 2014 will remain branded under the name EADS and associated former Divisions (Airbus, Eurocopter, Cassidian and Astrium).

Nordenham, Germany

SHAREHOLDER CALENDAR SHAREHOLDER INFORMATION Printed on 6 February 2014: Private Shareholder site visit, recycled paper Toulouse, France Publication director: www.airbus-group.com Auriane de Soultrait Tel: +33 800 01 2001 26 February 2014: Annual Results 2013 [email protected] Editorial team: James Gibbs, Guilhem Boltz, Marine Esperandieu, 13 May 2014: Q1 Results 2014 Pierre Henner, Barbara Llopis FREEFONE 20-25 May 2014: ILA Berlin Air Show Photos: Airbus Group, France: Germany: Spain: all rights reserved 30 July 2014: Half-Year Results 2014 0 800 01 2001 00 800 00 02 2002 00 800 00 02 2002 4 AERO-NOTES - JANUARY 2014